Discovery assessments and carelessness: In S Rizvi v HMRC [2023] UKFTT 124 (TC) (13 February 2023) the taxpayer had made multiple claims for enterprise investment scheme (EIS) relief despite not holding an EIS3 for any of the investments. HMRC alleged that the taxpayer or someone acting on his behalf had been careless and therefore HMRC was entitled to raise discovery assessments in respect of those tax years. HMRC’s allegation of carelessness on the taxpayer's part was confined to his failure to make sure that he had an EIS3 before making a claim; HMRC did not suggest that the taxpayer had been careless in failing to satisfy himself that the schemes met all the statutory EIS requirements. The FTT held that while the insufficiency of tax arising from the invalid EIS claims was not brought about by carelessness on the part of the taxpayer it...
